New Zealand Tax Agency Seeks Comments on Proposed Updated Guidance on Shortfall Penalties

The New Zealand Inland Revenue Aug. 29 opened a consultation on Exposure Draft No. PUB00500, to update guidance on shortfall penalties imposed for not taking reasonable care, taking an unacceptable tax position, or gross carelessness. Updated topics covered include: 1) the circumstances in which a taxpayer using a tax agent is treated as having taken reasonable care; and 2) the removal of GST and withholding taxes from the scope of the unacceptable tax position shortfall penalty. The proposal also includes new examples, and new separate guidance on shortfall penalty reductions and “tax position” and “tax shortfall” requirements. Comments are due ...